Newsletter #115 February 2015

FAIR-WEATHER FRIEND?

The music industry can be forgiven for feeling hard done-by of late – with two pieces of legislation recently given the bums rush by UK Government plc.

Earlier this month, what for many is the bête noire of the live sector – Secondary Ticketing – saw its passage towards greater transparency and regulation by way of the Consumer Rights Bill frustrated in a Commons vote which contradicted the House of Lords who remain in favour of greater regulation of ticketing.

And the sun set on 2014 with the Government failing to secure fair compensation for artists as part of it’s adoption of the EU’s Copyright Directive on the right to copy exception. This rightfully decriminalises the act of private copying for personal use, yet without adequately compensating artists; the government insisting that compensation was effectively already “priced in”.

This lack of support on key areas of policy is worrying given the sector’s net contribution to the UK Economy, as evidenced in recent figures published by UK Music – Measuring Music – which shows a contribution to the UK economy in terms of the Gross Value Added of some £3.8bn, for a sector that employed in the region of 110,000 people and achieved exports of £2.2bn in 2013.

With fewer than 100 days before polling day, if past form is anything to go by, cynics can be forgiven for thinking that any day now, the main parties will move to court the vote of the UK music industry. Yet does anyone have an appetite to revisit the Cool Britannia of yester year, which saw the briefest of dalliances ‘twixt the government of the day and the music industry, and which fell by the way side almost as quickly?

During that time, the Licensing Act represented perhaps the single biggest piece of largely unnecessary and unwanted legislation affecting the music industry, its critics repeatedly pointing out that much of the legislation needed to deal with noise abatement, public order and safety issues was already in existence. Post-Act tinkering has since witnessed a U-turn of some of the onerous regulations introduced and serves as a timely reminder that Government regulation comes with consequences – intended or otherwise and the fallout of the Licensing Act 2005 has been well-documented.

By coincidence, that’s the same argument being put forward by proponents of the secondary ticketing market, who maintain that structures and laws are in place to deal with frauds, touts and ticket bots, neatly sidestepping the issue of transparency in the market over pricing (and profiteering).

But whereas existing legislation appeared to have been swept to one side in the case of the implementation of the licensing act, for whatever reason, the pre-existing legislation shtick peddled by opponents to ticketing reform seems to have held its ground, for the time being.

A common theme uniting the call for regulation of secondary ticketing and rightsholder compensation in the case of private copy exception is one of transparency – or lack of it. In a case of reverse logic straight out of political satire The Thick Of It, transparency in ticket pricing was deemed to not be in the interests of consumers, who would be “overburdened with red tape”.

It would help matters if Government itself could be seen to be more transparent. The appointment of a secondary ticketing platform boss to non-executive director status of DCMS raises questions about influence that it would do well to address.

And at a time when the tax affairs of large corporates are under constant scrutiny, it seems some areas of enterprise are treated entirely differently, with one of the major secondary platforms having relocated its registered office to Switzerland from the UK to minimise its tax liabilities for revenue earned in the UK.

Similarly, there’s a pressing need for greater transparency and effectiveness at safeguarding a private copying system that strengthens creators’ rights to the benefit of the UK economy as a whole. As it currently stands, the implementation of the Bill contradicts the Government’s own objectives and, many fear, will serve only to further confuse the consumer about media formats and what can and can’t be copied.

Prime Minister David Cameron is on record has having declared the music business “a massively important industry…(Music) is going to be a leading industry for our country and I want the Government to be right behind you, helping you every step of the way.”

OUT & ABOUT: MusicTank events

Remember – all MusicTank events and courses MUST be booked and paid for in advance! Become a member of MusicTank – see January Sale (below) for details of special promotional rates.

10 Mar – MONEYBALLING MUSIC: BIG DATA, CONSUMERS AND A&RSo is data the new oil? 2014 saw a hive of activity twixt the music, media and data industries with a number of high-profile partnerships and acquisitions, including Twitter and 300, Spotify and The Echo Nest, and Warner Music Group and Shazam, forming over the last few quarters. And already this year, Apple has bought Musicmetric, the data service provider that among others provides the data-crunching back-end to Shazam – one of the biggest music recognition and sales platforms in existence (and itself now valued at $1bn).

Taking its lead from our recent publication of an MA thesis on the subject of Big Data, this Future Thinking event will consider how the recorded music industry is currently collecting and using data to support a historically subjective process of signing new artists. It will also consider how data can also be used to help minimise investment risk through deeper understanding of consumer behavior and demand.

Download the FREE published paper which is at the heart of this event’s debate – Moneyballing Music: Using Big Data To Give Consumers What They Really Want And Enhance A&R Practices At Major Record Labels – here.

20 Apr – THE ROAD TO TOUR MANAGEMENTAndy Inglis returns to deconstruct the live industry, this time focusing on one of the most interesting, pertinent and specialised areas: Tour Management. Whether you want to be a TM, you’re an artist manager assuming TM responsibilities, or indeed are the only member of the band who’s got decent wifi and can liaise with the promoters (!) this one-day course will prepare you for the all the things you hadn’t thought of, and set you straight about all the things you had.

Tutored by Andy Inglis, this course is designed as a much-needed best-practice roadmap for tour management, drawing on Inglis’ two decades of experience in the live sector as tour manager (most recently Savages), artist manager (2014 Mercury Music Prize-nominated East India Youth) and respected co-creator and manager of London venue, The Luminaire.

“I became a tour manager because someone got it into their head I’d be good at it, which isn’t necessarily the best path to success. I mean, I’d probably make a decent shoplifter, but a long stretch in prison wouldn’t suit me. Similarly, long stretches away from home with a bunch of people you didn’t realise you hated until you landed in Moscow might not suit you either, so you may as well come along, listen to me recount a litany of hugely embarrassing and costly mistakes (and how you can avoid them) before deciding if you’re cut out for the job…”

25 Jun – PRIVATE COPY EXEMPTION: RIGHTSHOLDERS AND REMUNERATION
October 1st 2014 saw an end to the UK’s ‘odd-man-out-in-Europe’ status, by ratifying the Copyright and Rights in Performances (Personal Copies for Private Use) Regulations 2014, granting consumers the legal right to copy CDs and DVDs on to personal computers, mobile devices and internet-based cloud locker services, for their own personal use.

Leaving aside the issue of ‘fair compensation’ for rightsholders as stipulated by the EU Copyright Directive (yet denied by UK government, who now face a Judicial Review at the behest of UK Music, The Musicians Union and BASCA), the mechanism, transparency and effectiveness by which rightsholders are compensated for private copying in the majority of European countries remains up for debate.

With the European Parliament’s Private Copying report (17.02.14) calling for further discussion to be conducted in order to update the mechanisms of rightsholder compenation systems and make them more effective, MusicTank grasps the nettle and takes forward this complex aspect of rightsholder remuneration.

At the heart of this debate is MA Music Business Management postgraduate Sam Rudy’s thesis – Private Copying Of Music: The Fundamentals of a Modernised Model of Compensation – a bold evolution in the concept of private copying exemption that effectively balances the need for rightsholder compensation with a harmonious, equitable and transparent process that accurately and appropriately charges those who enable copying – the device and hardware manufacturers who profit from the copying of music. This paper will be published and available for free, in March.

Moderated by Keith Harris, this think tank debate will begin with a presentation by report author Sam Rudy (Miloco Group), followed by a panel discussion including John Smith (General Secretary, Musicians’ Union) with others tba.

ANNOUNCEMENTS: Music Week discount; Music Venue Trust Alliance

Music Week Special Offer
As lead lead media partner for our upcoming think tank: Moneyballing Music: Big Data, Consumers And A&R, March 10th, Music Week is kindly offering all MusicTank subscribers a special subscription rate of 14 months for the price of 12 on any subscription (digital only or full premium package, anywhere in the world). To take advantage of this special offer, simply enter the promotional code: MW1412RB in the allocated box here…

Music Venue Trust UpdateMusic Venue Trust has formally announced the launch of the Music Venues Alliance, an association of venues and organisations that have united behind the work of the Trust to engage with the industry, the cultural sector, and politicians to take actions that protect, secure and improve the UK’s music venue network. Emerging from Venues Day 2014, the Music Venues Alliance is the first significant response to the recent ICMP summary report “Understanding Small Venues”, which painted a picture of a UK live music venue circuit that is in a perilous and precarious state, facing an uncertain future at real risk despite the passion of the people involved in it. Download report | More…

“This paper considers how the recorded music industry is currently collecting and using data to support a historically subjective process of signing new artists. It will also consider how data can also be used to help minimise investment risk through deeper understanding of consumer behaviour and demand.”

INDUSTRY DIARY: Other music industry events

12 Feb – MPG AWARDS 2015The MPG Awards celebrates the achievements of the best in UK music production. Exclusive live performance by the legendary producer, songwriter and musician, Dave Stewart, accompanied by his band and some very special guests. More…

17 Feb – MPA: INDUCTION COURSE FOR NEWCOMERS TO MUSIC PUBLISHING
This course provides an essential overview of the music publishing business, its organisations and their roles, and is ideal for those new to the music industry or those familiar with other areas of the music business but would like an introduction to music publishing. More…

25 Feb – MUSIC 4.5: GLOBAL IS THE NEW LICENSING TERRITORYMonetising and protecting rights in the new global UGC landscape. Register now and save up to 20%. Use promo code MUSICTANK to receive a further discount on the available rates. More…

5 Mar – AIM SOCIAL

Taking place at the Strongroom Bar in Shoreditch, March’s AIM Social will see !K7 Records go head to head on the decks with Disrupt Ltd. Get a unique insight into the music that has inspired and shaped these two exciting independent labels, while enjoying a few drinks with other AIM members and independent music companies. This is a free event for AIM members and the wider independent music industry, but you do need to register for the guestlist to attend. More…

SHOW ME THE MONEY: Latest funding opportunities

Crowdfunding Stats
Kickstarter regular publishes interesting insight and analysis of the data their platforms produces. From trends in pricing and duration, to analysis quarter-by-quarter, if planning a campaign, here’s some publicly available data to help you make those all important decisions, and better shape and pitch your crowdfunding project.2014 in numbers | Data | Stats

Sky Academy Arts ScholarshipsThese are open to artists aged 18-30 and are designed to help emerging talent from a range of disciplines to develop their work and take their careers to the next level. In addition to financial support, winners are paired with business and creative mentors from Sky and their industry. There are five £30,000 scholarships available, open to UK and Ireland-based artists working in various creative sectors including music. Deadline: 5th Mar. 2015. More…

Accelerator: Commission-Free Crowdfunding For CreativesAccelerator is IdeasTap’s new commission-free crowdfunding platform. An arts charity and funder, Ideas Tap are now we’re offering its members a way to raise project funding themselves – without the commission fees other crowdfunding platforms charge. Every month, up to two Accelerator projects will each receive £500 from Accelerator to help each of them reach their target. More…

Sound And Music – Composer Funding
This organisation produces an extensive list of funding, bursaries and opportunities available to composers and artists working in the field of new music. More…

MPA: 2015 Richard Toeman ScholarshipThis Scholarship is designed to support the progress of outstanding individuals within the music publishing industry; to encourage potential, or new, recruits to the industry to develop their skills and experience through study; and to encourage each year’s recipient to achieve an enhanced preparedness for a successful career in the music publishing industry. Deadline: 26 Mar. 2015. More…

Innovation Vouchers: Get Funding For Your Business
University of Westminster Innovation Vouchers offer a great opportunity for your business to access its expertise and services, as they fund 40 per cent of the cost of new academic enterprise projects. Vouchers can be used for consultancy or contract research done by an academic specialist, as well as professional or organisational development training, such as bespoke courses, specialist training or coaching. The idea you want help with should represent a real challenge for your business that requires specialist assistance, not just a small improvement or change to what you currently do.

You can apply for two types of vouchers:

Discovery Vouchers, which are worth up to £4,000 and aimed at new SME partners and at scoping projects with larger organisations.

Larger Vouchers, which are worth up to £12,000 and support strategically important R&D or major organisational development and training with medium-sized and larger organisations.

The voucher programme is for new business engagements, not repeat business. More…

That's all for this issue - 'til next time...

If you have any queries regarding any of our events or activities, please call us on +44 (0) 20 8357 7317, or email: editor@musictank.co.uk

The views and opinions expressed are those of the author and are not necessarily condoned or shared by MusicTank. MusicTank is a non-profit organisation owned and operated by University of Westminster. University of Westminster is a charity and a company limited by guarantee. Reg Number: 977818, England. Registered Office: 309 Regent Street, London, W1. MusicTank is based at University of Westminster, Watford Road, Harrow, Middlesex HA1 3TP